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A tiny investment in Bitcoin or other cryptocurrencies can earn you significant profits down the road. I remember talking to my mother about this new thing I was investing in called Bitcoin back in 2017.
I explained how these virtual currencies could be worth hundreds of thousands of dollars someday in the future. She had some concerns about how safe her investment would be, so I rambled on about how Bitcoin was protected by cryptography and how difficult it was for her wallet to be compromised.
My Bitcoin pitch was apparently not very convincing. That and the fact some of the ideas I’ve pitched to her in the past have been out there.
Reluctantly, she agreed to invest $100 on this Bitcoin thingy. She was following the cardinal rule of investing; only invest an amount you can afford to lose.
I managed to get her to open an account with Coinbase, helped her with the identity verification requirements, and used her debit card to make her first Bitcoin purchase. Her $100 purchase got her 0.037 BTC.
My Bitcoin price prediction turned out to be correct, and her small $100 investment is now worth over $1,500. Now, she tells me she wishes she had invested more when I told her about Bitcoin and refuses to sell her holdings.
But this story isn’t unique to just my mother and I. No, millions of people invest in Bitcoin every single day. And just because the price of one coin is around $47,000, doesn’t mean you need to spend that in order to buy-in.
Let’s go over how just about anyone can invest in Bitcoin with $100 or less and some of the popular strategies investors use when it comes to cryptocurrency investing.
Investing in Bitcoin with $100 or less
The story above is an example of fractional investing. I initially tried to get my mother to buy an entire Bitcoin when I explained cryptocurrencies to her, but she wasn’t willing to invest that much since she found the whole concept a bit too complicated.
Basically, fractional investing allows an investor to buy a partial share of an asset. In this case, you’d be buying part of one Bitcoin. This strategy also applies to other types of assets, like stocks or real estate.
Many other investors probably feel the same way, especially now that Bitcoin is priced at over $42,000. Fortunately, you don’t have to purchase an entire Bitcoin to start investing in it.
A single Bitcoin can be divided by up to eight decimal places. Its smallest unit is called a Satoshi, and it’s one hundred millionths of a single Bitcoin. There is no dollar equivalent for a Satoshi. A penny currently gets you 25 Satoshi.
The high divisibility of Bitcoin allows you to start investing in Bitcoin with as little as $10. That little investment could earn you a couple of hundred bucks in a few years.
Some of the popular trading strategies you can explore if you decide to invest in Bitcoin include:
- Holding: This is the easiest way to invest in cryptocurrencies. You don’t have to be a chart wizard to make significant profits using this strategy. It’s ideal for people who are new to cryptocurrencies, like my mother, who have no desire to trade it actively. You buy, you hold, and check out prices from time to time. Most cryptocurrency billionaires and millionaires are people who invested early and held on to their holdings.
- Day trading: Day trading Bitcoin involves carefully analyzing charts and order books to determine the best prices to buy and sell. People who are successful at day trading cryptos tend to be good at spotting market trends and keeping up with related news and announcements. Day trading is one of the riskiest ways to invest in cryptocurrencies, but, when done correctly, it allows you to increase your holdings gradually. And, as the name suggests, you’ll be trading your coins sometimes multiple times a day in this strategy. So, while it is possible to make some serious money day trading, you can also lose just as much as you earn.
- Short-term trading: Short-term trades are typically anywhere between a few days to a month. It’s similar to day trading, but planning to have your holdings tied up for a longer period makes it easier to buy and sell at favorable prices. You’ll need to learn how to read charts and spot patterns to succeed with your short-term trades. You’ll also need to keep up with the news that could affect prices.
- Long-term trading: This strategy involves buying it at long-term low prices and waiting for prices to go up to enjoy a healthy profit. You might end up holding on to your investment for a couple of years with this strategy, and you’ll need to be able to interpret charts
Making your first Bitcoin purchase
It’s up to you to figure out which trading strategy works best for you. You will also need a platform to make your purchase with. How much you’re willing to spend often dictates which apps or websites you can buy from since some platforms have minimum purchase requirements.
Some of the simplest ways to make your first Bitcoin purchase include:
Coinbase is one of the first company’s to bring Bitcoin and other cryptocurrencies to the mainstream. The platform is user-friendly and very similar to the online platforms many banks use. You’ll need a debit card or bank account to start investing. You might also be asked to scan your ID as part of their identity verification process.
Once you have your account all set up, purchasing and selling Bitcoin is as simple as clicking your mouse a few times.
To make things even better, Coinbase allows you to purchase as little as $2 worth of Bitcoin. You can also sell that amount on their platform, allowing you to capitalize on market swings, if you wish, with your tiny investment.
I first started using Bitpay to convert Bitcoin to fiat currency since it was the only platform that allowed you to send Bitcoin to a debit card and convert it to fiat currency for immediate use.
Bitpay has expanded their services since I first used them, and they allow users to purchase Bitcoin and a handful of other cryptocurrencies on their platform.
Your purchases are made through Bitpay’s partner Simplex, and you’ll need to spend a minimum of $10.
This is one of the easiest apps to invest in Bitcoin or stocks with, and it allows you to invest as little as a dollar. The user interface couldn’t be any easier, and setting up your CashApp account is straightforward.
You fill out your personal and debit card information, and you might be asked to scan your ID.
Once your CashApp account is set up, you can purchase and sell Bitcoin and stocks with only a few swipes. It is also a great app to send money to friends and family members without paying any fees. In addition, it’s a great way to pay your share of the tab when you’re out having fun.
PayPal is a newcomer to the cryptocurrency space after being a major pain in the backsides of cryptocurrency investors. I remember trading cryptocurrencies on sites like Paxful and having sellers telling me not to mention Bitcoin anywhere in the memo.
That was enough to get your PayPal account banned back those days.
I guess the old saying, “if you can’t beat them, join them,” eventually forced the largest online payment processor to reconsider its stance on cryptos. You can now purchase and sell Bitcoin on their platform for as little as $1.
I’ll leave you with a warning, though, as someone who has made a significant portion of my income via freelancing in the past decade, no company has caused me more grief than PayPal.
The company restricted my account on multiple occasions, preventing me from accessing my funds. It took up to a week to address some of the limitations placed on my accounts. Many people who use PayPal a lot, particularly to receive payments, have had similar experiences.
If you do end up purchasing Bitcoin with PayPal, I highly recommend transferring your holdings to a private wallet, so you don’t have to deal with their shenanigans.
5. Bitcoin ATMs
The increasing popularity of Bitcoin has led to ATMs that allow you to purchase and sell Bitcoin popping up all over the place. It’s one of the easiest ways to purchase Bitcoin since you typically don’t have to fill out any information or upload documents.
Most Bitcoin ATMs only ask for a phone number that a receipt of the transaction can be sent to. Purchasing Bitcoin from an ATM only takes a few minutes, and you can invest as little as $20.
Most Bitcoin ATMs give you the option of having your purchase sent to a wallet you provide or a paper wallet printed by the ATM. Paper wallets are the most secure way to store a cryptocurrency, providing you don’t lose the piece of paper or give others access to it.
Pros and Cons of Investing $100 or Less on Bitcoin and Other Cryptocurrencies
Investing small amounts in Bitcoin and other cryptocurrencies has its pluses and minuses. Some of the main benefits include:
- Minimizes risk: Small cryptocurrency investments protect you from significant losses, yet you might still get to enjoy massive profits. A single Bitcoin was only worth a few pennies when the cryptocurrency was first developed, so a hundred dollar investment back then would have made you a multi-millionaire by now. If Bitcoin prices had gone the other way, you would only be out $100
- Easier to diversify: Many professional stockbrokers recommend having a diverse portfolio. The same applies to cryptocurrency investments. One of the trading strategies I currently use involves purchasing $100 worth of multiple cryptocurrencies I think have bright futures and transferring them to a hardware wallet. If any of these virtual currencies enjoy a massive price increase within the next few years, I get to cash out a healthy profit. I wish I had started doing this when Bitcoin was so cheap
Some of the downsides of investing small amounts in Bitcoin or other cryptocurrencies include:
- Limited earnings: This doesn’t need much of an explanation; the more you invest in anything, the bigger your profits will be if prices move in your favor
- Fees can eat up significant portions of your investment: Bitcoin transactions are handled by miners, the network of computers that powers the blockchain, who charge you a fee whenever you send BTC from your wallet. These fees often increase as prices rise. Depending on where you make your purchase, sending BTC to your personal wallet can end up costing you as much as $20 in fees. You can get around the fees by leaving your Bitcoin on the exchange you purchased it, but that leaves you vulnerable to losing your holdings if the exchange gets hacked in the future. Hackers have lots of incentives to attack these platforms since they typically have billions of dollars worth of cryptocurrencies stored on them at any given moment
No Amount is Too Small
You don’t have to purchase an entire Bitcoin to make money off rising prices. You get to enjoy the same profits regardless of how little you invest.
In the story I opened up with, my mother ended up turning a $100 investment into over $1,500. She would have multiplied her investment by the same multiple of 15 if she only invested $10. That would have been a $140 profit off a $10 investment. If she had invested a thousand dollars, she would now have over $15,000.
No matter which strategy you decide to go with, whether it’s a long-term or short-term one, investing $100 is super simple. Just always remember – No investment is guaranteed to give you a return, so only invest what you can afford to lose.
And nowadays, there are a ton of different apps and sites that let you invest in Bitcoin for less than $100. Choosing the right site is up to you, but with big players like Coinbase and CashApp, all of your Bitcoin investing needs are sure to be met.
Thanks to the divisibility of Bitcoin, everyone can afford to invest in Bitcoin and cash in on long-term rising prices.
Nobody knows what the future holds for Bitcoin or other cryptocurrencies, so invest wisely, do your research, and you may turn that $100 initial investment into $15,000 someday!